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CLEVELAND — The Brotherhood of Maintenance of Way Employes is seeking a merger with the United Steel Workers of America, according to a report on the BMWE website.

The following letter, reproduced from the BMWE website, was written by BMWE President Mac A. Fleming.

February 26, 2002

All General Chairmen, System Officers, Local
Lodge Presidents, Secretary-Treasurers and Local
Chairmen in the United States and Canada

Dear Sirs and Brothers:

Re: BMWE merger negotiations with the
United Steel Workers of America

In May, 2001, I received a letter from United Steelworkers of America (USWA) President Leo Gerard, inviting the SW to enter into merger negotiations with the USWA. At the time, I declined President Gerard’s offer, as we were nearing completion of merger negotiations with the Boilermakers. I did, however, inform President Gerard that in the event the proposed BMWE/IBB merger was voted down by the membership, that we would begin an internal process to determine if the BMWE would be willing to enter into merger negotiations with the Steelworkers.

After the rank and tile voted down the proposed BMWE/IBB merger, President Gerard once again contacted me regarding a BMWE/USWA merger. I then appointed a small exploratory committee to determine if there was any basis for moving forward. The committee unanimously recommended that the Grand Lodge Officers consider merger negotiations with the USWA.

On February 21,2002, the Grand Lodge Officers met in Pittsburgh, Pennsylvania with representatives of USWA, including President Gerard at the USWA Headquarters. We asked many questions of the USWA, and, in turn received a substantial amount of information regarding USWA operations and finances. After the meeting, Grand Lodge Officers voted unanimously to commence formal merger negotiations with the USWA. A copy of the resolution is attached for your ready reference.

The USWA consists of 650,000 members and is headquartered at Pittsburgh, Pennsylvania. Between a quarter and one third of its members are employed in “basic steel,” i.e., USX, Bethlehem, etc., the remaining members work in a variety of other occupations, including rubber, chemical, and aluminum. The USWA represents some railroad workers on the “steel roads” that are connected to major steel operations, The Steelworkers have a powerful presence on the Hill and appear to be in a strong financial condition, with a budget for the International of about $100 million per year. For example, the USWA allocates at least $3 million per year for organizing alone, and has over $110 million in their Strike and Defense Fund.

The BMWE is scheduled to enter into intense negotiations with the USWA between April 2 and 7, 2002, at the USWA Educational Facility located near Pittsburgh, Pennsylvania. Before we begin these negotiations, however, we would like your input as to what you may desire to be included in a merger agreement with the USWA. It is our intent to make certain that you are well informed as to what steps and actions we are taking to that end, and that to the best of our ability, address your concerns in this process. In the event we are successful in reaching an acceptable merger agreement with USWA the agreement would then be provided the membership to accept or reject.

The BMWE Negotiations Committee will consist of the members who served on the IBB Negotiations Committee if they desire to participate, as well as any Grand Lodge Officer who desires to participate. Staff members will serve as advisors to the Committee. General Chairmen desiring to attend the negotiations are invited, but will attend at the expense of his respective system division or federation. As there are a limited number of sleeping rooms available, please advise Bill Hildenbrand of my office at your earliest convenience if you plan to attend.

During merger negotiations, our goals will be to increase the BMWE’s ability in providing the best possible agreements for our members, expand services to the membership and manage costs through efficient integration of our resources with those of the USWA. We ask that you remember that a merger negotiation with another union is not the same thing as negotiating with a railroad. The purpose of merging with another union is to maximize our ability in securing the best agreements possible when we do negotiate with the railroads, while expanding the services BMWE is able to provide us all in the most economically efficient way possible.

Please provide any suggestions that you may have to Bill Hildenbrand of my office in writing by the end of business Friday, March 22,2002. The Grand Lodge Officers are convening directly thereafter for the purpose of reviewing ah suggestions, as well as to make suggestions of their own, to prepare for USWA merger negotiations commencing April 2, 2002:

William A. Hildenbrand
Administrative Assistant to President
26555 Evergreen Road, Suite 200
Southfield, MI 48076
FAX: (248) 948-7150
E-mail: billh@bmwe.org

E-mails, faxes or letters are all acceptable.

To the best of our ability we will keep you informed of the progress of these negotiations and attempt to incorporate your ideas into the merger agreement.

Thank you.

In solidarity
Mac A. Fleming